Fuel Prices Likely To Be Slashed On May 5

The Zimbabwe Energy Regulatory Authority (ZERA) will likely reduce the price of fuel after an unprecedented fall in global crude oil prices caused by the COVID-19 pandemic which negatively impacted on demand.

ZERA acting chief executive officer Eddington Mazambani told NewsDay that any adjustments in fuel prices will be done according to law and if there is a downward movement, it will be revealed in the next price review. Said Mazambani:

I cannot pre-empt the final price for May 2020, we will use the FOB (free on board) of refined fuel up to end of April 2020 and any other considerations from government and other stakeholders.

However, the fall in crude oil is expected to filter to the FOB prices of fuel imported into Zimbabwe.

… I hope you are aware that Zimbabwe imports refined fuel, not crude and that the fuel we use is imported in advance not spot purchase. Adjustments in fuel prices will be done according to the law. If there is any downward movement, it will be reflected in the next price review.

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Mazambani added that according to Statutory Instrument 270 of 2019, Zimbabwe sets fuel prices monthly and the next review is due on May 5, 2020.

Currently, fuel is priced at Z$21,52 and Z$21,77 per litre of diesel and petrol, respectively.

More: NewsDay